BW Offshore has slightly reduced the valuation of its planned oil and gas spin-off, the Oslo-listed company said as it presented details for the initial public offering on Wednesday. 

The valuation of BW Energy was shaved to a range of between $700 million and $750 million, from the $700 million to $800 million proposed in a preliminary filing on Jan. 15. 

BW Energy aims to raise $175 million in cash to help fund output growth from 9,000 barrels of oil per day (bopd) in 2019 to a range of 50,000-60,000 bopd in 2023, primarily from fields in Brazil and Gabon. 

The company planned to price the new shares in a range from 34.20 to 36.60 Norwegian crowns ($3.81-$4.08) each, while adding the final offer could however be set above or below that level, depending on demand. 

Outside investors would hold between 24.2% and 25.6% if the transaction was carried out according to plan. A so-called over-allotment option could raise the share sale somewhat, taking the free float to between 26.3% and 27.7%, it added.

 ($1 = 8.9769 Norwegian crowns) (Reporting by Terje Solsvik, editing by Gwladys Fouche)

Read More: BW Energy Oslo Listing Set For 1Q 2020